Optimizing Paid Search Campaigns for the ‘Third Device’

It’s time to think of tablets as a distinct “third device” and devise performance marketing strategies to engage tablet users. Advertisers must take advantage of the ability now offered in AdWords to target smartphones and tablets separately.

Tablets are the fastest-selling consumer technology device in history. According to eMarketer, 24 million U.S. consumers will own a tablet by the end of this year. By the end of 2012, 12.8 percent of people in the U.S. will own a tablet.

As of June 1, Google AdWords began separating “tablets with full browsers” as a distinct device within AdWords reporting. Previously, tablets were grouped with all “mobile devices with full browsers” (i.e., smartphones). Thus, June gave us our first look into tablet paid search impression and click volume. Impressions and clicks were immediately high in June, showing that tablets have likely been materially contributing to Google mobile paid search share for a number of months.

For Performics’ aggregate client base, 12.1 percent of all June desktop and mobile paid search impressions came from mobile devices. Of this 12.1 percent, 14.3 percent came from tablets. Based on these numbers, tablets now compose 1.7 percent of all paid search impressions. Additionally, tablets contributed to 13.3 percent of all mobile paid search clicks. Tablet cost per clicks track at about 50 percent of PC cost per clicks. The bottom line is that consumers are now on tablets searching for your brand, and it’s not expensive to engage them.

It’s time to think of tablets as a distinct “third device” and devise performance marketing strategies to engage tablet users. Advertisers must take advantage of the ability now offered in AdWords to target smartphones and tablets separately. At Performics, we’ve seen that tablet usage patterns resemble mobile patterns — people do most of their tablet searching in the evening. However, people use tablets differently than smartphones, which reveals opportunities to optimize your paid search campaign for the third device.

Unlike smartphones, tablets feature advanced scrolling functionality. Since tablet users can scroll with a gesture, they’re more likely to peruse search results and landing pages. This makes tablet users more likely than smartphone users to click on search results that are further down the page. Thus, bid strategies should differ when targeting tablets versus smartphones.

Tablets have bigger screens than smartphones. Tablet traffic should therefore be driven to desktop — not mobile — landing pages, where users have more room to browse.

A different device means different copy optimization opportunities. Once tablets are separated into distinct search campaigns, copy and links can be geared specifically to tablet users — e.g., “purchase now from your tablet” or “buy an accessory for your tablet.”

As the device landscape becomes increasingly fragmented, performance marketers must capitalize on every little opportunity to optimize advertising by device. Brands that tailor advertising to support tablets will achieve a first-mover advantage as tablets increase in popularity. This advantage comes in the form of data — e.g., nuances in how your customers use different devices — which reveal opportunities to engage consumers in more effective and efficient ways.

Have you noticed ways that your customers interact with tablets differently than smartphones or PCs? If so, please leave a comment below.

Forecasting a Cheery 2010 Holiday Shopping Season for Paid Search Campaigns

With the holidays fast approaching, news and economic trends relevant to this year’s holiday shopping season have been mixed, though generally favorable. A recent study by ChannelAdvisor revealed that 81 percent of shoppers plan to spend the same or more on holiday gifts this year. The study also found that more of that shopping will be conducted online.

With the holidays fast approaching, news and economic trends relevant to this year’s holiday shopping season have been mixed, though generally favorable. A recent study by ChannelAdvisor revealed that 81 percent of shoppers plan to spend the same or more on holiday gifts this year. The study also found that more of that shopping will be conducted online.

From a performance perspective, actively managed holiday paid search campaigns delivered impressive results during the 2009 holiday shopping season in comparison to the rest of the year. In 2010, these campaigns have already achieved strong year-to-date (YTD) growth. This strong YTD growth will likely continue into the fourth quarter, and Performics predicts this will net out to 15 percent year-over-year (YOY) growth for actively managed holiday paid search campaigns. The results could be even stronger for search advertisers who are able to make Q4 outshine the rest of the year like they did in 2009.

Either way, all signs point to growth for these campaigns, and marketers should keep the following opportunities in mind:

Continued emphasis on value. Free shipping and discounts have become standard as retailers continue to vie for cost-conscious consumers. Average order value is down 9 percent YTD according to a Performics Holiday Retail Group report, and this trend will likely continue into Q4. Providing offers on upsell or cross-sell products can help boost order totals and offset free shipping and other discounts merchants offer.

Delayed shopping as savvy consumers research and wait for late sales. The first two weeks in December 2009 saw sales increase by 27 percent compared to 2008, while Black Friday sales decreased 17 percent YOY. Sales during the last week of free standard shipping prior to Christmas also increased significantly in 2009. However, numbers may shift this year if consumers feel more confident with compelling sales already underway. The recently released Compete Holiday Insights survey found that 50 percent of consumers have already started holiday shopping.

Shoppers are reaching for their phones. Nearly half of adult smartphone owners younger than 25 will use their smartphones to shop this holiday season, according to a new survey from the National Retail Federation and BIGresearch. An increasing share of overall clicks are coming from mobile — 6.7 percent in September, and projected to be greater than 10 percent within 12 months.

Improved efficiency of last-minute shopping. Consumer spending and cost per clicks dropped dramatically following the last week of free standard shipping prior to Christmas 2009. Active paid search advertisers can do more for less after Dec. 17.

Marketers looking to capitalize on these opportunities and improve holiday performance should consider the following recommendations:

  • follow best practices to actively manage campaigns and effectively respond to market forces;
  • offer aggressive promotions early to capture shoppers;
  • actively participate in the last week of free standard shipping prior to Christmas;
  • embrace mobile to ensure the channel’s increasing user base can find you when searching; and
  • continue active management of paid search beyond Dec. 17 to further boost efficiency.

By following shoppers’ changing behaviors this holiday season — and planning and executing campaigns accordingly — marketers can boost their odds of a jolly holiday.

Search Marketing Reaches for New Heights

It’s no secret the economy is forcing online retailers to change the tactics they use to acquire and retain customers. But this doesn’t mean they’re cutting back across the board. While they’re cutting spend in some areas, they’re spending more in other areas that bring positive ROI.

It’s no secret the economy is forcing online retailers to change the tactics they use to acquire and retain customers. But this doesn’t mean they’re cutting back across the board. While they’re cutting spend in some areas, they’re spending more in other areas that bring positive ROI.

This may be why more than 80 percent of the 24 percent of retailers, who indicated in a recent Forrester Research survey conducted for Shop.org that they’ll spend more than originally planned this year, said they planned to increase their search spend.

The results of the survey of 117 online retailers were compiled in Shop.org’s study, The State of Retailing Online 2009.

The study reminded me of a case study I heard about recently involving Cabela’s, the direct marketer and specialty retailer of outdoor sporting goods. The company used a paid search campaign designed to push traffic into retail stores during a Memorial Day sales event last year.

Cabela’s maintains a strong online and catalog presence in addition to a growing number of retail stores across the U.S. “To increase traffic at these brick-and-mortar locations,” says Derek Fortna, Internet marketing manager at Cabela’s, “we decided to promote our offline stores online.”

For the campaign, Cabela’s partner, Performics, built paid search campaigns for each store, focusing on keywords for Cabela’s brand, the Memorial Day event and the combination of both, such as “Cabela’s Holiday Event.”

Geotargeted strategies were used. The company developed ad copy offering in-store coupons. These appeared on search pages of people who were in a 200-mile radius during the holiday event, and could only be redeemed at those locations. Landing pages were also developed to guide consumers through the coupon retrieval process.

The results? Ten percent of all consumers who clicked on the ad retrieved coupons, and 40 percent of the coupons were redeemed at retail locations.

This is one of the best success stories I’ve heard involving geotargeting, retailing and online search, and certainly one worth going to school on.